Dick's Sporting Goods Writes Off Value Of Its Investment In JJB Sports
Dick's Sporting Goods has written off the value of its investment in JJB Sports, five months "after ploughing £20M into the lossmaking business," according to Jennifer Thompson of the FINANCIAL TIMES. The U.S. retailer that invested £20M in JJB back in April disclosed a "pre-tax impairment charge" of $32.4M as it reported second-quarter results Tuesday. Dick's said that JJB's performance had "materially deteriorated from its expectations" since the time of its investment. Dick's added that it had "no further financial funding obligations to JJB at the moment." Charles Stanley Securities Analyst Peter Smedley said that this position "increases the pressure on the U.K. sports retailer." Smedley: "I think it does hasten the likelihood of some kind of administration process." Shares in JJB closed down nearly 4% at 4.33 a share (FINANCIAL TIMES, 8/14).